Foster's hasn't achieved the success in wine than it's had in beer. But if the brewer can pare its products, investors should have reason to raise a glass.

AUSTRALIA'S FOSTER'S GROUP has learned the hard way what drinkers have long known: mixing beer and wine can make you sick.

Nearly a decade ago, executives at Foster's, which commands 52% of the local beer market, feared that there wasn't much room to grow and that extending their brewing expertise throughout Asia would be a tough task. One brief foray into China had ended badly. Seeing Australians growing wealthier, management focused...